The Bay Area Paradox Delivers Timely Discussion

Part II of the 2016 East Bay Leadership Series delivered on its promise of an interesting and timely discussion focused on what we call the Bay Area Paradox: you can work here, but you can’t afford to live here.

Sharon Jenkins, Director of Corporate Health & Employer Broker Relations at John Muir Health and the EBLC’s V.P. of Economic Development and Jobs, focused on how the housing shortage affects the health and productivity of employees.

When Jenkins sits down with an employee and their blood pressure is through the roof, she asks how their morning has been so far. “More often than not, they tell me about their two-hour commute both ways,” said Jenkins. “Commuting for two hours to get home means you barely have time to squat, gobble, and sleep before starting the whole routine over again.”
 
Jenkins also asked employers in attendance if they could expect their employees to travel two or more hours to work and still be 100% productive. “Long commutes are bad for employee’s health and bad for employers, I know that for sure,” said Jenkins.

Denise Pinkston of TMG Partners and Jennifer Hernandez of Holland and Knight took on the root cause of the crisis and what be done to fix it.

CLICK HERE TO VIEW SPEAKER SLIDE DECKS

Pinkston opened her remarks by trying to answer why the region has been unsuccessful in building homes for the middle class.

“Infill development means getting closer and that can be awkward. That’s why people don’t like it,” said Pinkston as she demonstrated the dynamic by sitting on the lap of a guest in the front row.

However, there are bigger hurdles than those who say ‘Not in my backyard’ or NIMBYs. The lack of fiscal incentives for cities to add housing under Prop 13 is at the core of the crisis. The increasing regulatory, labor, and material costs of building in the Bay Area only intensifies the housing shortage.

These conditions have resulted in “many companies dealing with the housing problem by leaving the Bay Area because that’s where their employees can afford to live,” said Pinkston. 

Pinkston also highlighted legislation that would reduce the fees on residents who wish to build additional units of housing on their property as a small reform that could have a big impact on the housing supply. 

Senator Wieckowski is carrying a bill (SB 1069) to support this type naturally affordable and virtually invisible development for what are being called Accessory Dwelling Units (ADUs). The EBLC is supportive of the bill and will continue to advocate for its passage in Sacramento.

Jennifer Hernandez, Pittsburg-native and partner at Holland & Knight, rounded out the discussion with a focus on how the California Environmental Quality Act (CEQA) is often used for non-environmental purposes.

In particular, Hernandez pointed to a lack transparency in the process that allows business competitors, NIMBYs, and special interests to use CEQA to block development, often multi-unit housing near transit that our region needs.
 
Hernandez contests that to stop abuse and start building more housing we must first force litigants to sue without anonymity. A requirement that would not deter established environmental groups from using CEQA litigation when appropriate. In fact, only 13% of CEQA lawsuits in Hernandez’s study were filed by an environmental group of any kind.

“Environmental advocates support of CEQA has a heck of a lot more to do with political alliances and donors who define the environment as their own backyard,” said Hernandez.
 
“CEQA litigation abuse is real, it is harming people (especially the poor, the working class, and the young), and it is obstructing rather than advancing critical environmental priorities,” said Hernandez.

The discussion drew rave reviews for both its timeliness with the Governor Brown’s “by right” housing proposal introduced into budget negotiations last week and presentations that were enlightening to land use wonks and policy amateurs alike.

If you missed the event, it will be presented in its entirety on CCTV starting on June 27 at 8:00PM and available on CCTV’s website for on demand viewing soon.